Sunnyvale Real Estate Investing & Real Estate Financial Planning™ Podcast

James Orr

Learn all about investing in real estate in Sunnyvale, California with a combination of real estate financial planning and modeling with numbers specific to Sunnyvale plus syndicated, more generalized recordings of live and pre-recorded real estate investing classes (not all specific to Sunnyvale). read less
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Episodes

Secrets to Marketing to Find Tenants
6d ago
Secrets to Marketing to Find Tenants
If you're going to manage properties yourself in Sunnyvale, you're going to need to know how to do the marketing to find tenants. This class is Module 3 of 46 in a series called Real Estate Investing Secrets. Topics covered in this module include: The 6 “Property Management Mastery” modules included with this course.How to change your thinking about renting a property to a tenant that can improve your marketing and tenant screening.How early should you start marketing your property for rent? Why start then? What are the advantages? And, what must you do if you cannot start then?A Comprehensive Tenant Marketing PlanHow do you deal with marketing for a tenant when purchasing a property to rent immediately?What are Fair Housing laws and why are they critically important for you to understand and follow them as a landlord?Do you need to do all the marketing we suggest? What if you could only do 1 thing? 2 things? 3 things? Includes a discussion of the Pareto Principle (80/20 Rule).The top marketing sites for marketing your property for rent.To syndicate or not? A brief discussion.The importance of spying on your competitors and what specifically to look for and how to utilize what you discover.What to include in your ad? And, how to think about your marketing.Why hiring a professional photographer… even if you have an amazing camera on your phone… is strongly encouraged and the unexpected reasons behind this suggestion. Examples of amateur versus professional photos.How to increase the quantity of your tenant leads. How to increase the quality of your leads. When to use each strategy in your business.What’s one thing you need to include in your ad and understand for each step in your tenant screening process?How to utilize yard signs and directional signs to generate tenant leads.What should you use YouTube for when marketing for tenants? And, how to do it.What should you do with flyers for your rentals?How to use postcards to neighbors and when do we typically use them when marketing properties?How do we suggest using Facebook for marketing your properties?A method to market your property that may or may not be available in your market, but why you should use it if it is available.What are the rare circumstances where we’d utilize Open Houses to fill rental vacancies?When should you create, maintain and use a Buyer’s List when marketing properties?Plus much more... Check out the video and additional resources related to Secrets to Marketing to Find Tenants. Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Secret Market Stats
Sep 27 2024
Secret Market Stats
Having a solid understanding of historical market stats is important for investing in real estate in Sunnyvale. This class is Module 2 of 46 in a series called Real Estate Investing Secrets. Topics covered in this module include: Should you try to “time the market” using data to increase profitability?How much are properties selling for? Do property values always go up? How much have properties gone up per year since 1965? What would your annual ROI be on a property using that appreciation rate if you put 20% down as an investor or 5% down as a Nomad™ or house hacker?If we adjust for inflation, how much have properties goes up in value per year? Why is this not a truly apples to apples comparison and what can we do about it?What would a typical owner-occupant primary residence rent for? How has that changed since 1975? What is the rent equivalent appreciation rate over that period? And, why is that not a fair and valid comparison?What’s one measure of housing affordability? And, does it prove houses are less affordable today than they were between now and 1980?What are new construction properties selling for? How has that changed since 1960?How many new single-family homes are for sale in the US now and going back to 1960? How many have sold? What can we determine from this?What’s a stat that combines both the supply of properties for sale and the demand for properties into one powerful single number? How do we interpret that stat? How has it changed between 1960 and now?How many properties are occupied by owner-occupants? How many by rents? How has this number changed between now and 2000?What percentage of properties are vacant and for sale? What percentage are vacant and for rent? How has this number changed between 1960 and today? How does this relate to your estimated vacancy rate on my personal rental properties?What have 30-year fixed rate mortgage interest rates done between 1960 and today? How does that impact you as investor today? Why is this a perfect example of desirably asymetric risk and how to utilize it as a real estate investor?What have typical mortgage origination fees and discount points been since 1960 through recent times? How does this directly impact you as a real estate investor today?What percentage of households in the US are homeowners? How has that changed since 1960 through today? What does that mean for us as real estate investor landlords?What is the median household income in the US—adjusted for inflation? And, how has that changed since 1980?What percentage of household disposable income is spent on debt service and, separately, how much is spent on mortgage debt? How to think about this? How does this strongly play into favor for real estate investors that hold properties and mortgages for long periods of time?How much equity do US households have? What percentage of property do they have as equity and how has that changed since the 1950s. Can we see as our nation’s philosophy on housing debt has changed over the last 70+ years? What is our current position on property equity?How have home prices changed (adjusting for inflation and not)? How often have property values declined year-over-year? How frequently—and by how much—have property values increased? What lessons can we—as real estate investors—take away from that to help us make better decisions?A discussion of a great chart by John Wake showing how the amount you can borrow while keeping a $1,000 per month mortgage payment changes with interest rates over time.How does the cash price, the inflation adjusted cash price and the monthly mortgage payment price of a property compare to a property in 1990 for all months through 2024? What lessons—as real estate investors—can we draw from this to make better investment decisions?How has per capita (per person) personal income in the US changed from 1990 through 2022?How many single family homes and apartments (5+ units) have we been completing each month since the mid 1960s through today? Why might this be a really good early signal depending on your desired real estate investing strategy?How many houses are completed by region of the US?What is a great way to measure how swiftly a real estate market is moving? What’s normal? What do we see every year? What do we see over time?How many times is a typical house marketed for sale shown? How has that changed over time? What are we seeing now?How have rents been changing? What is normal? What are we seeing lately? How does rent impact cash flow and why is this to our significant advantage as real estate investors?Plus much more... Check out the video and additional resources related to Secret Market Stats. Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Secrets of the 7 Ways to Invest in Real Estate
Sep 20 2024
Secrets of the 7 Ways to Invest in Real Estate
Having a deep understanding of the 7 key real estate investing strategies is critically important for your success as a real estate investor in Sunnyvale. This class is Module 1 of 46 in a series called Real Estate Investing Secrets. Topics covered in this module include: The 7 ways to invest in real estate… plus 2 more bonus strategies that we don’t coverWhich strategies are great for investing with little or no down payment?Which strategies are great for generating immediate money in your pocket?Which strategies require you to find less-than-common deals in many real estate markets?Why real estate investing is usually get rich slow and what to do about it in the meantime?A special technique—that can be applied to just about all the strategies—that will allow you to overcome just about any deficiency or weakness you’re currently experiencing in your current real estate business— deals, people to run the projects, down payments or financing abilityThe 6 ways we primary categorize and group real estate investing strategiesPlus, the 12 additional—some would argue even more important—ways we categorize, group and organize real estate investing strategiesWhat are the 8 ways we finance real estate strategies when buying? And, how does that change when we sell properties?How a story about an alligator in the sewers of NYC helps us understand where to find our most interesting real estate deals?What are all the different channels (sources) of real estate deals for all of our strategies?What’s the difference between actively and passively holding real estate?What are the top channels for exiting real estate deals? Which do we hope to never use?Plus much more... Check out the video and additional resources related to Secrets of the 7 Ways to Invest in Real Estate. Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Warning - Risks of Missed Inspection Issues When Investing in Real Estate
Sep 13 2024
Warning - Risks of Missed Inspection Issues When Investing in Real Estate
There's a risk to just about everything in life... including investing in real estate. One risk that some real estate investors fear is the risk of buying a property having missed important, expensive issues with the property during the inspection period. In this class, James will discuss the risk of investing in real estate and specficially the risks associated with missing things on inspection. Topics covered in this class include: The 3 primary ways to limit your exposure during the inspection period when buying a propertyHow to hire a quality home inspectorWhat your typical recourse is on a home inspector missing something on an inspectionOne little thing you can and should do on every property purchase—especially for new real estate investorsWhen a home inspector is not enough and what to do about itThe one thing most real estate investors—especially experienced investors forget to do—that could save them money and headaches later related to the inspection reportA special tip if you negotiate a seller to complete repairs based on what you find during your inspection that could prevent a catastropheA list of the most common inspection issues you’re likely to run into if you buy enough propertiesA secret about seller property disclosures that few people—even real estate professionals—know about that could prevent you from making a very costly mistakeHow to use your inspection and seller property disclosures to better plan for your capital expenses combined with the downloadable CapEx Estimator for Rental Property - Basic and the CapEx Estimator for Rental Property - AdvancedWhy you should always walk the property right before closingAnd what can you do if you missed something on inspection?Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Warning - Risks of Interest Rates Rising When Investing in Real Estate
Aug 30 2024
Warning - Risks of Interest Rates Rising When Investing in Real Estate
There's a risk to just about everything in life... including investing in real estate. One risk that some real estate investors fear is that rising mortgage interest rates will: Increase their mortgage payment and therefore hurt cash flow, orThe rising mortgage interest rates will lower affordability and demand for properties, and therefore the value of properties they own will decline. In this class, James will discuss the risk of investing in real estate and having mortgage interest rates rise, and how to mitigate or completely eliminate the risk. Topics covered in this class include: Historical perspective on mortgage interest ratesThe challenge with Recency Bias for real estate investorsCurrent mortgages at various interest ratesThe Mortgage Interest Rate Confidence Meter™ and how likely it is that you'll be able to get a certain interest rateThe two big fears around rising mortgage interest rates for real estate investorsHow to completely avoid the impact of interest rates on your cash flowWhy balloons are for clowns and not real estate investorsWhat to do about buying more properties in a high property price, high mortgage interest rate, and lagging rent environmentPlus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Warning - Risks of Tenants Trashing Properties When Investing in Real Estate
Aug 23 2024
Warning - Risks of Tenants Trashing Properties When Investing in Real Estate
In this special class about the dangers, risks and warnings of investing in real estate: The #1 fear that keeps potential landlords and new real estate investors up at night!Expert insights on why this fear is more common among inexperienced landlords and investors in challenging real estate markets.Real-life horror stories of tenants causing significant damage and expensive repairs - and how to avoid falling victim to it.Proven strategies to select reliable tenants through thorough improved tenant screening criteria and process.The surprising role your potential tenant's cleanliness plays in predicting how they will treat your property.How to obtain positive landlord references and why checking with previous landlords is crucial for accurate tenant assessment.Uncover the red flags of tenant screening, including the absence of references, and save yourself from potential disasters.Gain valuable insights into the importance of maintaining the foundation of your property and other unintentional structural damage from tenants.Learn how to effectively communicate with tenants about property maintenance and inspire them to take care of your investment.Discover the secrets of investing in the right type of real estate market to maximize your profits and minimize risks.Inside tips on dealing with theft and vandalism by tenants, and navigating insurance policies to recover losses.Learn the art of property inspection and what signs to look for in a potential tenant's current residence to predict their treatment of your property.Expert advice on when to hire a property manager and when to take matters into your own hands.Plus, much more invaluable knowledge and expert advice to help you navigate the risks and succeed in real estate investing. Don't miss out on this informative class and unlock the secrets to protecting your properties and maximizing your real estate investments. Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
How to Analyze an All-Cash Rental Property Purchase
Aug 16 2024
How to Analyze an All-Cash Rental Property Purchase
Interested in learning how to analyze deals using The World's Greatest Real Estate Deal Analysis Spreadsheet™? Specifically, do you need to know how to analyze a deal purchased with an interest-only loan? In this special deal analysis, you will: Discover the secret strategy for analyzing the purchase of a rental property with an interest-only loan that can dramatically boost your cash flow.Unveil the power of making extra principal payments on interest-only loans and how it can improve your ROI.Get exclusive access to a step-by-step walkthrough using The World's Greatest Real Estate Deal Analysis Spreadsheet™ to evaluate your property investments.Learn how to calculate the *Cash Flow from Depreciation™* and leverage it to maximize your tax benefits.Gain insights into essential expenses to consider in your analysis.Uncover the hidden costs of rent-ready expenses and how factoring them into your investment can give you a more accurate ROI.Unleash the potential of the number one resource for analyzing real estate deals and take control of your financial future.Obtain insider tips and tricks directly from the creator of *The World's Greatest Real Estate Deal Analysis Spreadsheet™* and elevate your property analysis game. Don't miss out on this opportunity to master the art of analyzing real estate deals, even with interest-only loans, and unlock the path to financial success. Or, check out the deal analysis example for Sunnyvale, California: Deal Analysis and Modeling for Sunnyvale Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Haunted Houses or Hidden Treasures? Decoding Stigmatized Real Estate
Aug 9 2024
Haunted Houses or Hidden Treasures? Decoding Stigmatized Real Estate
Life has risks. Investing adds new risks. Investing in real estate adds new risks specific to real estate investing. One risk that is unique to real estate investing is the risk of buying a stigmatized property or having a property become stigmatized while you own it. In this class, James will: Uncover hidden gems in the real estate market and turn them into profitable investments.Learn how to leverage the power of stigmatized properties to create buying opportunities that others overlook.Discover the secrets to mitigating the risks associated with emotionally stigmatized real estate assets.Gain insights on dealing with crime scenes, haunted houses, and homes with a stigmatized history to maximize your returns.Get exclusive strategies for navigating divorce homes and properties with mold or hazardous material problems.Don't miss out on the chance to master the art of investing in stigmatized real estate and unlock hidden treasures.Take control of your real estate investment journey and eliminate the fear of stigmatized properties with expert tips and tactics.Be the investor who dares to tread where others hesitate and reap the rewards of your courage in the real estate market.Plus much, much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Real Estate Investing Through Massive Foreclosure Periods
Aug 2 2024
Real Estate Investing Through Massive Foreclosure Periods
Real Estate Investing Through Massive Foreclosure Periods Join us for an exclusive episode of the REFP podcast, focusing on "Real Estate Investing Through Massive Foreclosure Periods." In this enlightening episode, you'll dive into the following insights: Discover the secret to making money during economic downturns, a strategy that can set you apart from the crowd.Learn how to attract a specific group of unaffected renters for maximum cash flow, a targeted approach for consistent income.Uncover the extreme strategy of upgrading entire blocks or neighborhoods for massive returns, a visionary move with enormous potential.Understand how to measure Rent Resiliency™ and Price Resiliency™ to safeguard your property portfolio, vital skills for enduring market fluctuations.Explore the cutting-edge Real Estate Financial Planner™ software for optimized investment decisions, a tool that can elevate your investment game.Find out why cash flow and low expenses are key to weathering market storms, foundational principles for long-term stability.Master the art of timing the market and avoid missing out on incredible opportunities, nuanced skills that can lead to success.Learn how to minimize transaction costs and maximize your profits, a practical approach for every wise investor.Gain expert insights from Warren Buffett, Daniel Kahneman, Benjamin Grant, and Peter Lynch, wisdom from some of the brightest minds in investing and psychology.Unleash the power of acquiring properties during foreclosure periods with historically low interest rates, a unique opportunity for growth.Discover the advantages of holding properties through adverse market conditions and smart refinancing, strategic methods for thriving in uncertainty.Unlock hidden market indicators for accurate market timing predictions, a secret tool for the proactive investor.Understand the pros and cons of 1031 exchanges for capital gains tax avoidance, an advanced strategy for tax efficiency.Build a resilient portfolio with ample reserves and secure your financial future, the ultimate goal for every real estate investor.Plus much, much more... Don't miss out on this exclusive podcast episode! Get access now and take your real estate investing to the next level! Your journey to mastery might just begin with "Real Estate Investing Through Massive Foreclosure Periods." Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Deal Alchemy™ - Debt Paydown to Cash Flow
Jul 26 2024
Deal Alchemy™ - Debt Paydown to Cash Flow
Deal Alchemy™ - Debt Paydown to Cash Flow Join us for an exciting and enlightening class with James Orr as he delves into the fascinating world of Deal Alchemy™. In this class, listeners will discover a surprisingly powerful strategy that has the potential to drastically improve cash flow on rental properties. Whether you're considering buying a new rental property or already own one, this episode is a must-listen. Deal Alchemy™ is all about the art of transforming and combining returns in real estate investments. It's about taking the returns we receive from certain aspects of the property, such as debt paydown, and turning them into a different type of return that may be more desirable, immediate, or tax-advantaged. James Orr expertly guides listeners through the process of moving returns between different quadrants, helping them make informed decisions regarding their investments. During this class, James Orr breaks down the different categories of returns in real estate investments. He distinguishes between the cash later returns, like appreciation and debt paydown, and the cash now returns, such as cash flow and tax benefits. Listeners will gain a deeper understanding of how these returns work and their varying levels of certainty and speculation. But the real highlight of this episode is when James Orr unveils the strategy of using a little known secret to convert debt paydown into immediate cash flow. This unconventional method allows investors to optimize their cash flow by focusing on the certain and less speculative returns. James Orr explains the mechanics of this special strategy and how it differs from how much real estate investors typically set up their investments. Get ready to have your mind blown as James Orr shares his extensive knowledge and expertise on Deal Alchemy™ and debt paydown to cash flow. This class is not to be missed, as it offers invaluable insights and actionable strategies to enhance your investment portfolio. Join us and unlock the secrets of Deal Alchemy™ to boost your rental property cash flow like never before. In this class, James discusses: The definition of alchemyWhat is Deal Alchemy™How to manipulate your debt paydown return to immediately boost cash flowWhat are amortizing loans?What are interest only loans?What are the pros and cons of interest only loans?What are the risks of balloons?How much does this strategy improve cash flow? With examples.How does this impact reserves?Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Tax Deductibility of PMI Payments
Jul 19 2024
Tax Deductibility of PMI Payments
Tax Deductibility of PMI Payments Are you an owner-occupant puzzled by the ever-changing rules around PMI (Private Mortgage Insurance) deductibility? Or perhaps an ambitious real estate investor, hungry to maximize your deductions and supercharge your profits? Then this class is your golden ticket to the world of tax wisdom! Join us for an exhilarating journey through the labyrinth of PMI tax laws, where we'll explore: Two Distinct Worlds: Owner-occupant properties and investment/rental properties. What's the difference, and why should you care? We'll tease you with the answers!The Owner-Occupant Odyssey: Living in the property? You might think PMI is no longer deductible for you, but is that the whole truth? And what's this about Nomads™?Investor's Paradise: House Hackers, Rental Property Business owners, and more! Discover the secrets that could make PMI an exciting part of your financial strategy. No income limitations? Intrigued?The Grand Conclusion: We'll tie it all together, leaving you with tantalizing insights and a thirst for more. Whether you're an owner-occupant or an investor, we'll reveal just enough to make you crave the full story. This class is more than just a tax lesson; it's a thrilling adventure, a treasure hunt, and a financial empowerment session all rolled into one! Whether you're a seasoned pro or just dipping your toes into the real estate waters, we've got surprises and insights that will leave you hungry for more. So grab your financial compass and join us on this thrilling expedition. The path to PMI tax wisdom awaits, and it's a journey you won't want to miss! In this class, James discusses: What is Private Mortgage Insurance (PMI)?Is PMI deductible for home-owners?Is PMI deductible for Nomads™?Is PMI deductible for house hackers?Can you eve have PMI as a real estate investor?Is PMI deductible for real estate investors?Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
How Return on Investment Changes Based on Credit Score With PMI
Jun 28 2024
How Return on Investment Changes Based on Credit Score With PMI
How Return on Investment Changes Based on Credit Score With PMI Does your credit score really matter when you're buying rental properties? Sure, your credit score impacts the mortgage interest rate you can get with traditional mortgages. And yes, your credit score affects how much private mortgage insurance (PMI) will cost. Your credit score can also be a factor in the cost of insurance on your properties. But does it really make a significant difference? In a word: yes. Most people are surprised by just how much of an impact it has. In this class, James will walk you through the impact of your credit score on your return on investment and how long it will take to achieve financial independence. In this class, James discusses: Credit Score's Impact: PMI, Mortgage Interest Rate and InsuranceCredit Scores Therefore Impact Cash FlowCash Flow means dollars in cash each month, ROI from Cash Flow, Cash on Cash Return on Investment and Cap RateAlso impacts ROI from Debt PaydownAlso impacts common measures of riskThe numbers... how much cash flow are we talking about? ROI?How does this impact someone trying to achieve financial independence with rental properties?Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Is It Better to Buy Rentals with 25% Down or All Cash After Buying an Owner-Occupant?
Jun 21 2024
Is It Better to Buy Rentals with 25% Down or All Cash After Buying an Owner-Occupant?
So, are you stressing out over higher mortgage interest rates and properties not cash flowing as well as they used to, or in some markets, not having positive cash flow at all... even with 25% down? What's a real estate investor seeking financial independence to do? In this class, we will compare two strategies. In both strategies, you first buy an owner-occupant property with a 5% down payment to live in. Then, in the first strategy, you save up for a 25% down payment and buy a rental property. You repeat this process, stopping only when you own 9 rental properties. In the second strategy, you take extra time to save up until you have enough to buy the property for all cash... 100% down payment. While it takes longer to save up to buy a property for all cash, having a free and clear property, or two or three, with great cash flow makes saving up for subsequent rentals easier and faster. You repeat this process, stopping only when you own 9 free and clear rental properties. We model this in over 300 US cities using each city's property values, rents, taxes, insurance, etc. And, we use today's interest rates. Which strategy gets you to financial independence the fastest? Which gives you a higher net worth? Which is riskiest? Which should you utilize? Find out in this special class. Check out the video and interactive charts from this class here: https://RealEstateFinancialPlanner.com/model/25-down-vs-all-cash-with-oo/ Or, see Sunnyvale specific, detailed analysis of a variety of strategies here: https://RealEstateFinancialPlanner.com/model/CA/Sunnyvale/ Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Warning - Risks of Rental Demand Declining When Investing in Real Estate
May 31 2024
Warning - Risks of Rental Demand Declining When Investing in Real Estate
Warning - Risks of Rental Demand Declining When Investing in Real Estate Risk, risk, risk... Life is full of risks. To a limited degree, we get to choose which risks we voluntarily take on. For example, if you choose to invest in real estate, you choose to take on some additional risks that you might not—directly—face if you opt to invest in something else with its own set of risks. One risk when investing in real estate is the risk that the property you buy as a rental experiences a decline in rental demand, which often leads to a reduction in the rent you are getting. What are some things we can do to eliminate or mitigate this risk in advance of seeing possible rental market demand declining, and what are some things we can do after demand softens? That’s what James will cover in this mini-class. In this class, James discusses: A George S Patton quote about fear, risks and making decisions.More/Less speculative returns and why cash flow is more speculative than most people believeBuying properties that have mass appealBuying better quality propertiesModifying Warren Buffett's quote: Buying wonderful properties at fair prices versus buying fair properties at wonderful prices.Two opposing thoughts: discount for protection or quality to avoid sellingLower rent, hold on and absorb lower incomeReserves and cumulative negative cash flowChange useImprove cash flowSellGive property backRefi and/or recastBring in partnerPlus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.
Private Mortgage Insurance Myths
May 24 2024
Private Mortgage Insurance Myths
Private Mortgage Insurance Myths Reputation can be a challenging thing. I have found, through many conversations with clients over the years, that Private Mortgage Insurance (PMI) has a questionable reputation with home buyers in general and investors in particular. However, much of its reputation is based on half-truths, bad information, lies, and myths. In this special class, James will discuss some of the more common myths about PMI and the truth about what PMI is, and why its reputation is misguided and/or misunderstood. In this class, James discusses: What is Private Mortgage Insurance (PMI) and why does it exist?The following myths:PMI is always required for down payments less than 20%.PMI is permanent and can never be removed.PMI is the same as homeowner's insurance.PMI protects the homeowner, not the lender.PMI is tax-deductible.PMI protects the borrower in case of job loss or disability.PMI is the same for all borrowers and loans.PMI premiums are fixed for the life of the loan.PMI is always monthly, always paid as a lump sum at closing, and/or always paid by the lender in exchange for a higher interest rate.PMI rates are set by the government.PMI is required for all types of loans.PMI is only required for first-time homebuyers.PMI is only required for single-family homes.PMI is only required by big banks.PMI is always cheaper than a second mortgage.PMI pays off my house if I die with a mortgage.PMI increases the monthly mortgage payment.PMI is a waste of money.Refinancing is the only way to get rid of PMI.Lenders benefit from PMI.PMI covers the full mortgage amount.You should always pay PMI Monthly. You should always pay PMI in a single up-front, lump-sum payment. You should always take a higher interest rate and have the lender pay PMI.Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Sunnyvale real estate investor podcast? Book a free consultation to discuss.